QBE has reinstated trade credit cover for the majority of businesses that have policy limits up to $US250,000 ($411,800) after moves to cut their cover to nil angered brokers and clients.

Limits will be restored to 50% of the customer’s original cover for about 7000 key businesses in the segment, which includes construction industry firms that argued strongly against the sudden cuts.

About 2000 customers still face their coverage being cut, but QBE has extended the timeframe for introducing the changes to next Wednesday, and an appeal mechanism is in place to allow individual sectors or businesses to seek a review of their situation where there are essential needs.

QBE announced the revised trade credit arrangements today, along with a package of measures that are part of wider industry assistance for SMEs battling impacts from the continuing coronavirus outbreak.

“We have listened to our customers and understand they need support now and will continue to do so over the coming months,” Asia Pacific CEO Vivek Bhatia said today. “We are committed to helping them through this challenging time.”

The previous plans for widespread reductions to trade credit cover were advised in emails sent over the weekend and took effect without prior flagging of the changes.

The insurer is reducing cover by 25% in the $US250,000 ($411,800) to $US1 million ($1.6 million) range, and above that level in high-risk categories it is reducing limits by 50%.

QBE says the changes will provide greater flexibility to support critical industries and reflect the unprecedented and rapidly changing situation.